A proposed 41 per cent average increase in Chittagong Port’s service fees, set to be the first tariff revision in 39 years, has been put on hold after a high-stakes meeting with key stakeholders ended without a decision on Monday.
The meeting, chaired by Shipping Adviser Brigadier General (Retd) Dr M Sakhawat Hossain at the Ministry of Shipping, brought together representatives from major trade and logistics bodies, including the BGMEA, BKMEA, Shipping Agents Association, C&F Agents Association, Freight Forwarders Association, and the Bangladesh Inland Container Depots Association (BICDA).
Despite the Finance Ministry’s approval of the proposal on July 24 and subsequent vetting by the Law Ministry, mounting pressure from exporters and logistics operators forced authorities to pause the final gazette notification.
'Don’t hike fees by 40% overnight'
Industry leaders unanimously urged the government to scale back the proposed increases, warning of severe consequences for exports and trade competitiveness.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: “Almost all stakeholders agreed that the fee cannot be increased so drastically in one go. This will negatively impact the country’s export sector.”
He stressed that the port is a service institution, not a profit-driven entity, and noted that Chittagong Port is already generating surplus revenue. “We proposed that if an increase is necessary, it should not exceed 10 per cent on average, and implemented gradually,” Hatem said.
Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association, echoed the sentiment: “Exports won’t grow if we burden businesses further. The dollar has already surged in recent years, which has automatically increased port service costs. Another sharp hike now will push traders into deeper losses.”
Key operational issues raised
While the tariff remained the central issue, stakeholders also highlighted long-standing operational challenges, particularly delays in container delivery, scanning bottlenecks, and poor coordination with the National Board of Revenue (NBR).
Ruhul Amin Sikder, Secretary General of BICDA, said while his group did not comment directly on the tariff, they demanded urgent resolution of these systemic problems. “Before increasing fees, fix the service,” he said. A follow-up meeting with NBR and other agencies has been scheduled for 5 September.
No decision, but pressure mounts
Shipping Adviser Sakhawat Hossain confirmed: “No decision has been made yet. Further discussions will take place.”
The proposed fee structure, if implemented, would see the average charge for a 20-foot container rise from Tk 11,849 to Tk 16,243, an increase of Tk 4,395. For import containers, the hike would be Tk 5,720, and for exports, Tk 3,045. All tariffs are dollar-denominated, meaning any future currency fluctuation will directly impact costs.
While the port authority argues the increase is essential to fund modernisation and infrastructure upgrades, exporters fear it could erode Bangladesh’s competitiveness just as global demand remains fragile.
What’s next?
With the gazette notification now delayed, the government faces a critical balancing act: modernizing port infrastructure without overburdening the export sector.
As one trade official put it: “We need a smarter port, not just a costlier one.”
The next round of talks on September 5 could determine whether Chittagong takes a leap toward financial sustainability, or risks alienating the very industries that keep its cranes moving.